Intel Corp (INTC)

[Saturn V]

The smartphone situation is definitely getting better by the day. But the tablet situation is very bright, and I see Intel inside a majority of non iPad tablets within another year. The Tablet OEMs will not blink if they have to burn their bridges with ARM vendors, since application processor performance is a big issue for tablets.

Application processor performance is less of an issue for smartphones.Intel has still not demonstrated an integrated modem and processor, which is a handicap since that impacts weight and ergonomic issues for smartphones . This is less of an issue for phablets and tablets. Qualcomm is still a leader in introducing newer communication IP like carrier aggregation, and Intel is still playing catchup. The better Intel silicon process technologies will definitely impact application processor performance, but it is not clear how that will impact communication issues. So no phone vendor will burn their bridges with Qualcomm, and might give Intel a small share,while keeping a major relationship with Qualcomm.

For Tablets victory is in sight. Smartphones are still a work in progress. Intel acquired the LTE assets from Fujitsu, and also opened a design center in San Diego to presumably poach Qualcomm talent. Intel has the pieces but has to put them together properly, and it will take a few more years for smartphones.